Sarawak Power Monopoly

1. Unchecked high electricity tariffs are partly attributed to the monopoly enjoyed by the electricity generation and supply company Sarawak Energy Berhad (SESCO). SESCO has been the only electricity supply company in Sarawak since independence on September 1963. There has been a monopoly in electricity supply for unknown reasons.
2. In the recent times, Independent Power Producers (IPP) a power generation company known as Sejingkat Coal Power Plant and Sarawak Power Generation in Sarawak was incorporated to generate and supply electricity for distribution by the SESCO. Lack of competition in the electricity generation and supply sector is blamed for inefficiency and high costs of energy in the state. As a result of this, many individuals complain of expensive charges.
3. The cost of electricity generation and supply is made worse by the over-dependence on Diesel as the main source of energy. Diesel is world price dependent and the unpredictable price change has made the use of Diesel unreliable. I foresee, high electricity tariffs of electricity supply as an important factor that may contributes to BN performance for the forthcoming Sarawak state election.
4. As we are well aware, our nation current debt standing at 54% of our GDP or RM362 billion, it is definitely at a risky level. To address this concern, the government we voted in decided to reduce subsidies. Well, this is acceptable; however this has not been the case in the electricity supply sector. Subsidies given to Independent Power Producers (IPP) in Malaysia are worth RM13 billion a year and it is still there. In order to reduce burden to the people, federal governments could consider providing subsidies to SESCO instead to the IPP in order to make the cost of electricity for Sarawakian more affordable particularly for the poor. I believe, the federal government have provided the same subsidy to Sabah and why not Sarawak.
5. Alternatively, removing monopoly on power generation and supply, by allowing many companies to invest in the power sector and diversifying sources of energy could probably remove unchecked high electricity tariffs and hence increase efficiency. This could make the service reliable, accessible and affordable to many people particularly the poor and hence reduce over-dependence on gas as the only source of energy. In order to do this, political will and participation and support from different stakeholders are essential.
6. In sum, we should look at the matter of national debt holistically and not just on subsidies.